Latest / The Startup Exit Podcast with Fexingo: IPOs, Acquisitions, and Founder Liquidity Events
How Earnout Agreements Bridge Valuation Gaps in Acquisitions
In this episode, Lucas and Luna dive into the mechanics of earnout agreements—a tool used in nearly 40% of private tech acquisitions to bridge the gap between what a buyer will pay upfront and what a founder believes their company is worth. They break down how these performance-based clauses work, from revenue targets to product milestones, and why they're especially common in volatile markets like today's, where tech giants like Microsoft and NVIDIA see stock swings of 20% or more. Using real-world examples and current data, the hosts explain common pitfalls, such as earnout…
The skinny
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